The big news in international diplomacy is that the Americans have managed to get the Chinese to come on board with potential sanctions against Iran. This is quite a coup, given that relations between the two countries have recently been about as warm as Pingu’s handshake. But if this article in the Guardian is true, then it seems that the bargaining chip the Americans used to get the Chinese to be so agreeable is the threat of the U.S. branding them a currency manipulator. China, who have been pursuing a cunning plan of devaluing their currency by buying up American dollars in order to boost their exports, do not want to be called out on their trickery. All of which means that America has a pretty high-value bargaining chip which they can use to extract some concessions from the Asian dragon.
What a pity, then, that they’ve chosen to waste it on an agreement over Iran sanctions, which, for reasons put more eloquently by an actual expert on the subject here, are a bad idea. In a more perfect world where the major powers weren’t so cockeyed on the subject of how to contain Iran, the bargaining chip could be used to get so many worthwhile concessions out of China. For example, if the Copenhagen Summit was anything to go by, the Chinese are going to be a real thorn in the side of any potential international treaty on climate change. Then there’s China’s alleged cyber-attacks and scary censorship of the internet, which has led to Google basically abandoning it. And of course there’s China’s awful human rights record and habit of sticking their fingers in their ears and going LALALA when it comes to the issue of Tibet, not to mention their habit of trading with and selling arms to the likes of Sudan, Zimbabwe and other friendly African dictatorships. The list goes on. And on.
So there are many useful concessions America could have squeezed out of China. Instead they wasted what is quite a potent threat on more pointless and counter-productive posturing on Iran. Great. Obama’s had a good couple of weeks on the domestic and international scene, but for me this hits a real sour note. China is going to be a big problem in the next few years and it seems America just threw away an excellent bargaining chip. The question is, how many more does it have up its sleeve?



